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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: Thomas C (Hijacked) who wrote (16196)5/27/1998 11:25:00 PM
From: Lachesis Atropos  Read Replies (1) | Respond to of 69343
 
The beta on a stock tells one how well it correlates to the index. If one trades stocks that move 20%, one finds that the majority have a low correlation with its index. Typically, lower priced stocks do not follow their indices well. They jump around. One has to ask,"How often does the index move 20%?" The index, after all, is just the sum of its parts.

Lachesis